Investing for Development series: What is Innovative Development Finance and what could be the role of investors for impact?

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Investing for Development series: What is Innovative Development Finance and what could be the role of investors for impact?
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Overview

The objective of this E-Talk is to provide a brief introduction into the growing field of innovative (development) finance, present two selected use cases and examples to illustrate how innovative finance mechanism can be applied and to discuss which role investing for impact might play in innovative (development) finance. The event is the first of a series of EVPA events on investing for development.

This webinar took place on 12 May 2021 and is the first of a series of EVPA events on Investing for Development.

Webinar Recording

 

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What is this webinar about?

Innovative finance mechanisms are more and more needed in view of the challenges ahead. It is estimated that in order to achieve the Sustainable Development Goals (SDGs), investments of USD 2.5 trillion per year will be required in emerging countries alone. About 35% of annual funding is being bridged by public resources from development (finance) institutions and national governments leaving at least 65 % of the gap that would need to be covered by other, potentially new sources of capital capital. At the same time there is a growing consensus the international development finance community that the challenge is not only about the quantity of capital required but also about ensuring that the capital raised matches local needs, is investing for maximum effective and strengthens local (capital) markets. Innovative financing is about mobilising additional (private) capital and deploying capital more effectively and efficiently.

In view of above challenges, interest in mechanism that blend capital across the spectrum of capital and combine financial instruments in new ways have increased significantly in recent years. And yet, the engagement of European providers of impact capital in initiating developing innovative finance mechanism, using their capital catalytically to mobilise private capital for impact or co-investing with development agencies has remained limited

The objective of this E-Talk is to create more awareness and explore what role the European investing for impact community could play in innovative finance for sustainable development. We provide a brief introduction into the growing field of innovative finance and present recent developments on two selected innovative finance families namely, outcome based finance and structured funds and discuss entry points engagement opportunities for the European investing for impact community.

Agenda:

  1. Introductory remarks:
    Roberta Bosurgi, CEO EVPA - role of mobilizing capital for impact at EVPA
  2. Panel:
    Anja König, Lead EVPA DACH Region & KfW Advisor - Innovative development finance: an introduction
    Jan Martin Witte, Director Global Equity and Funds, KfW
    Paolo Monaco, EBRD - Impact bonds 2.0 Westbank and Gaza youth employment bond
    Milena Bertram, Finance in Motion - 15 years of structured funds - innovations and way forward
  3. Guided panel discussion

EVPA Moderator: Peter Cafferkey

Speakers

Milena Bertram

Milena Bertram

Milena Bertram is Director of External Relations and Impact & Sustainability at Finance in Motion, a global impact asset manager specialized in advising innovative blended finance funds with around EUR 2.5 billion in AuM.

She has previously managed Finance in Motion's investment activities in Middle East and North Africa with a focus on financial inclusion.


Jan Martin Witte

Jan Martin Witte

Jan Martin Witte is Director of the Global Equity and Funds department of KfW Development Bank. As such, he oversees the Bank's impact investment portfolio globally, with equity investments across ~60 funds and ~25 financial institutions (predominantly microfinance banks), and a total investment volume exceeding EUR 3 billion.

Prior to his current appointment, Jan served in different roles at KfW Development Bank, including as Director of the Central Africa and Regional Funds department; as Director of the Pretoria Office in South Africa; as Head of Division for Infrastructure in Southern Africa); as well as Senior Project Manager for Energy in East Africa (based in Kampala, Uganda).

Before joining KfW in 2009, Jan Martin was co-founder and Associate Director of the Global Public Policy Institute (GPPi) in Berlin, Germany. Jan Martin has published widely on issues of energy policy, international development, UN reform, global governance, and transatlantic relations.

Jan Martin holds a PhD and MA in international relations and international economics from the Nitze School of Advanced International Studies of Johns Hopkins University.


Paolo Monaco

Paolo Monaco

Paolo is responsible for the EBRD's business with SMEs and mid-caps in Turkey, Ukraine, Belarus, Moldova and in the Caucasus. He covers both the Advisory and Investment side of the EBRD's business.

Throughout the past ten years at the EBRD, Paolo focused on a number of new products' launches - amongst those, he led the team, which executed the EBRD's first investment in a social impact bond and is currently evaluating new opportunities in the sector. Prior to joining the EBRD, Paolo worked in the private equity, hedge fund, and investment banking industries, focusing on equity transactions.


Roberta Bosurgi

Roberta Bosurgi

Roberta joined Impact Europe as CEO in September 2020 from Novartis where she covered international roles in strategy, business operations and market access. More recently, at the Novartis Foundation, she led a collective impact initiative for cardiovascular health in low-income urban settings, building multi-sector private-public partnerships and working with social enterprises on the journey to scale and financial sustainability.

Roberta is a purpose-driven visionary leader with an inclusive leadership style. She brings over 20 years of international corporate and management consulting experience. She started her career in marketing in consumer goods, worked in retail in the UK and served clients globally leading large change/ transformation programs with McKinsey&Co. Over 10 years ago Roberta transitioned into the healthcare and the not for profit sectors, motivated by a desire to improve access to care in high and low resources settings.

An Italian-national, she loves travelling and getting to know new cultures. She speaks fluent English and conversational French, German and Spanish. Roberta is married and has 2 boys, 17 and 15.


Anja Koenig

Anja Koenig

Anja-N. Koenig is an impact investing, entrepreneurship and sustainable development expert as well as a trained facilitator in collaborative innovation and system change processes. She has more than 20 years of professional experience in the DACH region, (Central and Eastern) Europe, MENA, Africa, Asia and Latin America working with public and private sector clients on impact strategies, innovative finance and public private partnerships as well as incubating innovative projects for impact.

Until 2018 she supported entrepreneurship development in emerging countries at Swisscontact Foundation in Zurich. In 2015, she co-initiated and led Finance for Change at the Impact Hub Berlin to promote and encourage the use of finance for impact amongst philanthropic funders, business angels, VC funds and financial institutions. Between 2010 and 2014 she researched ways to strengthen the social investment market in Turkey, supported by Rockefeller Foundation and Mercator Foundation, before designing and leading the JP Morgan Chase Foundation Social Investment Programme at the Entrepreneurship Centre of Sabanci University in Istanbul. She also worked with Financial Advisory Services of PricewaterhouseCoopers (PwC) in Frankfurt, including in the impact evaluation of German Development Bank KfW and with PwC Transaction Services of PwC in Nairobi. She came to Kenya in 2004 as a long-term government advisor appointed by German Development Agency GIZ. She spent several years with economic consulting companies in London, advising public and private sector clients on public-private partnerships, regulation and policies in (renewable) energy, water and telecommunications sectors.

Since 2015 she has been co-host of the Impact Investing Roundtable Berlin (now Impact for Breakfast Berlin), a member of Women in Social Finance and a mentor with impact career organization On Purpose Berlin and German women career platform MentorMe. She holds an MBA from University Mannheim/Germany, a diploma in Political Science and Economics (IEP Science Po Paris/France) and a Post Master's Certification in Development Studies (GDI, Germany). She obtained additional leadership and facilitation qualifications inter alea from the Presencing Institute at MIT (Theory U), the Generative Facilitation Institute and the LEAD Academy, both in Berlin.


Peter Cafferkey

Peter Cafferkey

Peter is the Impact Europe's Foundations Market Development Lead. In addition, he is the CEO and Founder of Boncerto, a social good consultancy working with individuals, corporations and not-for-profits to help increase their effectiveness and enable them to do good, better.

Prior to heading up Boncerto, Peter had over a decade of experience working globally in the philanthropic sector, most recently leading for Geneva Global (a US advisory firm) in the UK and Europe, where he worked with wealthy families to help develop their thinking on philanthropy and deliver large scale development programs in Sub-Saharan Africa and South Asia. Prior to this Peter worked in the international department of the Charities Aid Foundation, providing strategic leadership to offices in East Asia and Australia, whilst representing CAF on the global stage.